Company Announcement - South Africa’s Renewable Energy Independent Power Producer Procurement Programme has been a huge success since it was launched in August 2011. Through the programme, the Department of Energy mandated the procurement of up to 3.625MW of power from IPPs of various renewable energy technologies including wind, solar photovoltaic, concentrated solar power, biogas, biomass, small hydro and landfill gas. An additional 3100MW has subsequently been made available for procurement under the REIPPPP and in October 2014 it was announced that a further 1.500MW is in the final stages of approval.
“The current power crisis in South Africa and other African nations has given rise to huge investment opportunities on the continent. Many African countries view independent power projects as a way to address the acute shortage of power, keep the lights on and industry producing,” says Scott Brodsky, energy lawyer and partner at Macfarlanes, an international legal firm with extensive experience in advising on IPPs in Africa. In just over three years, four rounds of competitive bidding have been successfully completed. Numerous projects across different renewable technologies have raised financing, completed construction and grid connection and achieved commercial operations, and many more are on target to do so in the next few years. “South Africa’s IPP programme has also brought the first substantial renewable output in a country dominated and severely constrained by its dependence on coal-fired power. The introduction of renewable energy into the grid is putting the country on the map with nations around the world who are implementing alternative, sustainable, cutting-edge energy solutions,” explains Brodsky.
“South Africa’s IPP programme has also been instrumental in driving local economic development, skills transfer and job creation.” “Whilst the programme has encountered challenges such as grid connection and there is no one size-fits-all solution for Africa, the programme is an example of how real results can be achieved in a short time frame,” says Brodsky. Macfarlanes is sponsoring the broadly subscribed Africa Energy IPP & PPA Conference and Workshop that takes place in Sandton, Johannesburg, in February next year. Brodsky and a team of Macfarlanes energy legal experts will be facilitating the workshop at Africa’s premier energy event, examining the requirements for successful IPPs and bankable PPAs and advising delegates on how to negotiate successful PPAs.
The IPP & PPA Conference and Workshop on the 19th February 2015 will examine the requirements for successful IPPs and bankable PPAs, lessons learned from recent experiences across Africa and the world, key pitfalls and how to avoid them.